The Key West Citizen Newspaper, June 2, 1953, Page 3

(AQUEDUCT COMMISSIGNNERS TO BE ELECTED HENCEFORTH King Blames Charter Changes|The World Today For Foreing His Resignation Papy Introduces ~New Bill To Conform With Constitution Florida Aqueduct Commissioners will henceforth be elected by Mon- roe County Freeholders if the re- vised bill introduced by State Rep- resentative Bernie C. Papy be- comes law. Rep. Papy redrafted his bill to make it conform to advice by New ‘York bond attorneys. The latter stated that the orig- inal bill which made the Board self - perpetuating was not consti- ‘This bill had already been vetoed by Governor Dan McCarty, but ‘was passed over his veto through the legislative courtesy custom. Yesterday Rep. Papy introduc- ed the new bill, which states that Monroe county ‘ireeholders (proper- ty owners) shall elect the five man Commission for four year terms. First election will take place in February, 1954, according to the bill. According to the AP, immediate- ly after Rep. Papy introduced the new bill, he appeared at the Ta- lahassee AP office with Richard Petty of the New York bond house of Mitchel and Pershing. Petty was quotefi as saying that fn’ the minds of his associates, “there was some doubt as to the oe” of the former ” Papy told the AP that it wasn’t the self - perpetuating feature of his original bill that worried the bond people, but the lack of a pro- vision for levying property taxes to help pay off the bonds. Under the new bill, should a Cemmissioner die, his place would be filled by the governor for the Temainder of the four year term. Hughes Asks Cut WASHINGTON — Rowland R. Hughes, assistant budget director, says the Eisenhower administra- tion would like’ to” cut + federal + spending by an additional eight bil- lion dollars im the. fiscal year start- 13 months from now. t is fiscal 1955, the first year for which the new administration a budget from Stratch, It be submitted in January. the coming fiscal year, Starting July 1, the administration Proposes to spend $74,100,000,000, $ compared with the $78,600,000,- rn) recommended by former Pres- ident Truman. Appearing before the House ‘Ways and Means Committee yes- tod Hughes said the target for the year is spending of @ to 66 billions. “Don’t hold me to it,” he said, “but that’s what we are shooting at.’ “1 CAN PUT YouR LONG DISTANCE CALLS THROUGH FASTER it you give me the out-of-town num- ber. That way I don't have to make you wait while I get the number from ‘Information’ in the city you're calling.” Save Time en Long Distance CALL BY WOMBER SOUTHERN Bt. TeLePNONS AMD THEGRAPH ComPanY Large Scale Attacks Made By Reds Today 11 Allied Mainland Positions, Several Outposts Are Hit By FORREST EDWARDS SEOUL (®—More than 4,000 North Korean and Chinese Reds slammed against 11 Allied main- line positions and a handful of outposts today as big-scale Com- munist attacks exploded in East- ern and Central Korea, American and South Korean in- fantrymen smashed 10 of the main line attacks, nine on the bloody Eastern Front and one on the Central Front. Fighting for trench-line positions just in front of Luke the Gook’s Castle on the Eastern Front still raged. There South Korean troops of the 12th Division were counter- attacking for a second time against Reds who hammered their way to Allied lines, An Eighth Army briefing officer said the bitter fighting on the Eastern Front was the heaviest in that section in more than a year. Some 2,500 North Korean Com- munists overran two small out- Posts and stormed four main-line Positions on or near Anchor Hill. All four attacks were beaten back by troops of the 15th ROK Divi- sion, the Army said. Another 750 Reds—a full batta- lion—hit Americans of the U. S. 45th . Division in three attacks jainst Sand Bag Castle. Each time the attackers were at the barbed wire by rifle and machine-gun crossfire, In the Luke’s Castle fight, 500 to 750 Reds threw a three-pronged attack against the Castle defense lines and against two main-line Positions east of the Castle. The two eastern prongs were smashed. North of the Punchbowl, Ameri- can soldiers battled hand to hand for 20 minutes in their own trenches and hurled back 175 Reds who overran a listening post and clawed their way into Allied lines. Another 175 North Koreans were beaten off in a three-pronged push against two ROK outposts at a main-line position between the Punchbowl and Anchor Hill, ROK defenders broke up a 150- to-200-man Chinese attack against Capitol Hill positions, on the East- Central Front. On the Western Front, seven cme Chinese jabs were tossed ck, American Thunderjets and ROK Mustangs bombed and strafed Red fortifications and troops in the Anchor Hill sector. Pantherjets, Thunderjets and Sabre jets, modified for fighter- bomber duty, hit the Reds in the western and central positions. Night-flying B26 bombers report- ed destruction of 117 Red supply trucks, 2 locomotives and 5 box- cars, Fifth Air Force reported, A Lelter From BILL LANTAFF Dear Neighbor: Economy or politics? This is the question prompted by the U. S. Department of Com- merce’s decision to move the Ci- vil Aeronautic Administration Re- gional Two Headquarters from At- lanta to Fort Worth, Texas - a move designed to coincide with the Department's action to reduce the number of CAA regional head- quarters from seven to four. Commerce Secretary Sinclair Weeks has announced the action will save $1.5 million from the CAA’s total annual budget. No one will argue against an effort to ef. | feet efficiency and economy. Yet, moving the headquarters of Region Atlanta to Fort Worth, Texas could conceivably cost more than it i i jand it collects 47 per cent Following is the complete text of City Manager Dave King’s let- ter of resignation to the city com- mission: May 22, 1953 Mr. Mayor and City Commisioners Dear Sirs: When I return to Key West al- most three years ago as city man- ager, I did so because I felt that Key West had a city charter that would permit me as city manager to accomplish that which is essen- tial and at the same time estab- lish a good business form of gover- nment, However, I made one sti- ulation to the effect that any or- ders would be given to me only during regular and special ses- sions of the city commission and that these orders would become a Part of the minutes, About six months ago, pressure was brought to bear on me in re- gard to my orders to the police de- partment and my appointment of a special investigator in plain clothes who reported directly to me instead of the chief of police. As director of public safety, I had the right to issue such orders and I followed through accordingly. I did not ¢omply with the demands of and threats made.to me. In not doing so, my every order has been questioned, criticized and then en- larged upon by those. who oppose me. I offered no objections to the un- just charges and demands made against me or imposed upon me. Those demands, threats and char- ges only would affect my personal mode of living, and well-being and not the work I am doing for the city of Key West. However, the Charter of the City ot Key West has now been amend- ed by the Representative of Mon- Toe County to such an extent that I do not have the authority neces- sary to produce and thereby ac- complish that which I know is necessary for the good and wel- fare of the community, One ex- stopped | ample is that I am no longer to appoint the chief of the police and fire departments nor have any voice in the selection of the per- sonnel or their assignments. As director of Public Safety, I am responsible for the actions and de- Pportment of both. This is an im- Possible assignment and a respon- sible which I cannot accept. I am a professional city mana- ger and as such can only accept esponsibility or orders which are established by the city charter or ordinances of the city. For reasons enumerated, I can- not remain as city manager of the city of Key West and hereby tend- er my resignation effective at 11:59 p. m. June 15, 1953. At this time, I wish to thank Mayor Harvey, Commissioners Co- bo and Delaney, those faithful city employees as well as most of the People of Key West for their con- tinual and constant support dur- ing my term of office. Most sincerely, DAVE KING, City Manager. quarters for Region Four is Los Angeles. Another good selection in- asmuch as it is the busiest airport in that region and the puint from which flights for the Pacific, Mex- ico and across our Nation originate and terminate. Now, let us consider Region Two. Eleven States, including Florida, make up the region, Centrally lo- cated in this region is Atlanta, which is now functioning as head- quarters or Region Two under the present CAA seven region setup. Atlanta, is close to the Eastern Seaboard along which most of the region’s aviation activities are concentrated. It is but 598 air miles and two and one-half hour: flying time from Miami and our International airport which is the busiest airport in the United Sta- tes according to the latest Com- merce Department report. Disre- |garding these facts, Secretary veeks Ww does not plan to retain cen- trally-located Atlanta as regional but proposes to move | it to Fort Worth, Texas, which is/ far away from the region's great-| est activity, By JAMES MARLOW WASHINGTON \—The excess Profits tax poses one of the strang- est dilemmas in American tax history, No solution—keeping it, softening it, or dropping it—will Please everyone, It's heartily disliked in Congress, probably by most memters. Gov- ernment tax experts frankl7 point out unfairness in it. And business- men despise it. The best argument in its favor is that it does bring the govern- ment revenue: about 2% billion dollars a year. There are two main arguments against it, and they go like this: It is unfair; it discour- ages business by draining profits. Not because he liked it but be- cause he said the revenue is need- ed, President Eisenhower asked Congress to exiend the excess profits tax (EPT) until Dec. 31. Otherwise, it will end automatic- ally June 30, Congress, now considering his request, after the start of the Korean War raised individuals’ income taxes and slapped EPT on corporations, Both kinds of taxes were meant to be anti-inflationary and to get money. (There is a good, but rarely mentioned, political reason for keeping EPT until Dec, 31, On that date the income tax on individuals automatically drops about 10 per cent. Voters might resent it if corporations got a tax cut in June, six months ahead of them.) Sore point from the beginning: What is an excess profit? Congress answered: a firm’s earnings in pre- Korea 1946-1949 must be taken as average or normal. A certain Percentage of present earnings, above that average, is excessive.’ EPT is in addition to the regular maximum 52 per cent tax on cor- porations earning $25,000 or more a year, Congress aimed at a total, maximum tax of 70 per cent on corporations—the 52 per cent reg- ular tax combined with EPT. Fir under $25,000 pay a flat 30 per cent, no EPT. Some of the arguments against the tax: Unfair— It’s particularly unfair to small businesses which were just getting started in the 1946-1949 period, when their profits were under. standably low, but which have now hit their stride, ae Their present: earnings, although much higher than before Korea, may still be only normal for their industry, Yet, those present earn- ings, or part of them, are treated as an excess over their 1946-1949 earnings. Or take another example: Two firms, perhaps in the same town, make the same product and are in competition. In 1946-1949 both were poorly managed, neither mak- ing the profits it could have made. About the time of Korea the stockholders in one of these firms hired new managers. By drive and imagination, they expanded the firm, ‘boosted its sales, increased its earnings. But it must pay a high EPT because its present earnings are so much above its pre-Korean average, But the other firm, still bum- bling along, its present earnings not much above the pre-Korean days, hands out a smaller chunk of money, or none at all, in EPT. In short, the smarter firm is Penalized for initiative. EPT hurts expansion by drain- ing off profits— All firms are aware of the exam- ple just given. Many of them therefore, know that the harder they work and the bigger their Profits, the bigger the slice that| | will be taken by the government. | | This discourages some from trying | jto do better, | And many, since EPT will siphon | off their earnings unless some of | it is spent on company expenses, jo in for extravagances that are not good business and are actually inflationary, such as big expense | j accounts, big parties, and so on.) There is another side to that coin, | money into research and | development. Here we have our Miam! Inter-| national Airport - the nation's bus- | Two, which includes Miami, from |iest. It has over 17,000 employees: foreign travel of the United States i i Secretary with . these facts. Such a move is “false ated in " gince the proposed sav- actually be eaten up is important lm! by personnel transfers, travel ex- the Midwest. The heafipeuses, communication charges! 4 |when compared with the disaster lit clears 46 per cent of the total! period. They cannot help but have some adverse | | effect on safety.” | This proposed move lacks a doo-/ lar-and-sense value. i Sincerely yours. i BILL LANTAFF ‘ By EDWARD E. BOMAR WASHINGTON — Seeretary of State Dulles returned from his survey trip to the Near East and South Asia declaring that this strategic area, like China, could fall victim to Communist domina- tion. “The situation calls for urgent concern,” Dulles said last night in a nationally broadcast and tele- vised report on his 20,000-mile tour of 12 countries, He said he found the United States ‘‘suspect” because of its al- liance with France and Britain, countries suspected by some non- Europeans of trying to res ore their colonial interests. The Arabs, he said, harbor a “deep resent- ment” against this ccuntry and are “more fearful of Zionism (the movement in support of a Jewish state) than of communism.” Saying that the U. S. had given most of its postwar attention to the “very important, but not all- important” Western European area Dulles observed, “It is high time that the U. S. government paid more attention to the Near East and South Asia.” “It came as a surprising shcok when the 450 million Chinese peo- ple, whom we had counted as friends, fell under Communist domination,” he continued. “There could be equally dangerous devel- opments in the Near East and South Asia, The situation calls for urgent concern.” Among Dulles’ conclusions were: 1, “Western powers can gain rather than lose from an orderly development of self-government.” The U. S. should honor the “proud FOR SALE USED BUILDING MATERIALS ALL TYPES AT YARD Clyde Mallory Docks oR. Call 2-5546 peoples” of the area and can, with- out breaking from the framework of Western unity, pursue its tradi- liberty. 2. The U. S. can help raise living standards “not with masses of money but by contributing ad- vanced technical knowledge about transport, communication, fertili- zation and the use of water for irrigation.” 3..To reassure Arabs, it must be made clear that the Eisenhower administration stands firmly be- hind the 1950 declaration that the U. S., Britain and France will not permit any violatiun of frontiers or armistice lines by either Israel or the Arab states. The U. S. will use appropriate meas to reduce tension. 4. It is up to the countries in- volved to promote a Middle East defense organization, ‘‘a future a | Possibility” and meantime the U. S. can help strengthen the in- terrelated defenses of those coun- tries which want strength. Dulles said his conferences with Gen. Naguib in Egypt convinced Tuesday, June 2, 1953 THE KEY WEST CITIZEN - {Dulles Reports On Danger To Near East Area | him the Egyptian quarrel with Britain over the Suez area can be settled. The same is true, he said, about the bitter dispute between India and Pakistan over Kashmir. Agenda For Flying Club Meet Given The agenda for the meeting to- night, Tuesday, 2 June 1953, at 7:30, promises some interesting in- formation for members of the Flo- ida Keys Flying Club, Key West’s latest civic enterprise. Among other things there will be a lecture by an aerologist. Arthur T, Holle- rirh, president of the club,, states this lecture is very interesting, and hopes it will lead to the forming of a ground school ejass in Aerology. He further stated that the meet- jing would be held in the lounge Portion of the Elk’s Club on Duval Street tonight. Someone will be at the front door to escrt attending members t the proper portion of the building. Page 3 You can’t build a fence around a moving child. But you can reduce accidents by keeping pots of hot liquids on the back burner, keeping medicine chests closed, knives in drawers, and your fingers crossed! 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